INTRO TO FOREX

INTRO TO FOREX

There are millions of people around the globe who trade in foreign exchange. It can be pretty easy or difficult to trade in foreign exchange depending on whether or not you know how to.First of all some facts - Foreign exchange market operates 24 hours a day, 365 days a year. Trade in foreign Exchange is a multi trillion market. Yes, Multi trillion dollars change hands each and every day of the year.So it is really obvious that thousands of people are taking to trade in foreign exchange every day. But it is really surprising that only a few people know how to trade in foreign exchange. This is also a fact that more than 90% of the people who take to trading in foreign exchange lose lots of money because they fail on the first basic principle - They did not invest in learning how to trade in foreign exchange.There are a number of different strategies which you can choose from before deciding on how to trade in foreign exchange. The most important thing is you will need to come up with a strategy that suits you.At the end of the day exactly what strategy you decide to adopt is largely immaterial but, what is important, is that have you a strategy before you start to trade in foreign exchange.Many traders today choose to base their strategy on a technical approach to trading while others prefer to follow a fundamental approach. Both approaches are fine but the truly successful traders will tell you that the real secret lies in not selecting one or the other but in combining the two.Deep technical analysis reveals that prices follow trends and that markets possess clearly identifiable patterns which can be recognized if you know what you are looking for. Both knowledge and experience play an important role in technical analysis but here it is a case of knowledge and experience of not just the patterns in the market but of working with the barrage of tools which are now available.Many people who trade in foreign exchange like to work with what are called support and resistance levels. In this case a support price is a low price to which a currency repeatedly returns, effectively representing the bottom of the market or the price at which it supports the market. By contrast, a resistance price is the high price which a currency reaches from time to time but above which it tends to resist rising.The importance of these two levels is that once a currency price drops below its support level it will commonly continue to fall and, similarly, once the price exceeds its resistance level it will continue to climb.It is also common for many traders to make use of moving averages which show the average price of a currency over a given period of time within a longer period. This is extremely useful for eliminating short term fluctuations in a currency price and producing a clearer picture of the movement of a currency over time.These are of course just the two of the strategies. And there are many more if you want to learn how to trade in foreign exchange. I cannot stress it enough that how important it is to learn to trade in foreign exchange before you dive right in. You will owe it to yourself in the long run

India becomes 5th largest holder of forex reserves

India becomes 5th largest holder of forex reserves

India on Friday joined the elite group of world's five biggest holders of foreign exchange reserves as it added about $4.5 billion last week to take the kitty to $261 billion.

The country surpassed South Korea, which had $257 billion in forex reserves as of September-end, to stand at the fifth spot. While India reports its reserve position every week, South Korea does so on a monthly basis.

China leads the pack with $1,434 billion, followed by Japan ($946 billion), Russia ($440 billion) and Taiwan ($263 billion). According to Reserve Bank's weekly bulletin released today, India's foreign exchange reserves increased by about $4.5 billion during the week ended October 19.

The rate at which the country's foreign exchange kitty is growing, especially after the US housing mortgage crisis, the country will soon overtake Taiwan. Among the BRIC (Brazil, Russia, India and China) countries, Brazil has the lowest foreign exchange reserves of $164 billion, according to the latest IMF data. The other major holders of foreign exchange reserves in the world include Singapore ($152 billion), Hong Kong ($141 billion) and Germany ($126 billion).

Total foreign currency reserves of the members of the Eurosystem, including countries which have adopted Euro as their currency, have been estimated at $453 billion. India's foreign exchange reserves have continued to grow at a rapid pace despite the efforts of the government and the Reserve Bank of India (RBI) to moderate inflows and encourage outflows through various policy initiatives.

Learn Forex Trading - Getting Started In The Marketplace

Learn Forex Trading - Getting Started In The Marketplace

For someone with zero experience and knowledge in the Forex market, getting started in the trading can be an overwhelming task. Various pitfalls, such as huge losses, can discourage even the most experienced trader. Since Forex trading can be a confusing business, you need to follow several guidelines to success.

First, learn Forex trading by choosing the most qualified brokerage firm. Although some firms are better than others are, you have a ton of options in terms of age, reputation and courses to offer. Generally, you should choose a well-established company with a good reputation that is tied to banks or various financial institutions. To ensure that a brokerage firm is legitimate, check if the company is registered with the Commodity Futures Trading Commission.

To learn Forex trading effectively, the brokerage firm should provide you with multiple research tools, such as charts, real-time quotes, trading techniques and research reports. You should choose a firm that offers its account holders as much information as possible. Be aware that the more knowledgeable you are with Forex trading, the more successful you can become in the market. Lastly, choose a highly regarded brokerage form with favorable spread. Be aware that a company with a good spread means that the firm takes off the top of each trade, translating into more profit for you.

In order to learn Forex trading, you need hands-on courses that allow you to experience the market firsthand. Of course, investing money without proper knowledge can lead to disastrous losses, so opening up a demo account should be your next move. With this demo account, you learn Forex trading firsthand because you will be given a pretend balance, which you could use to play around and experience the feel for Forex trading before using real money.

Most demo accounts are free-of-charge for an entire month. During this time, you can learn Forex trading and all its features, techniques and tricks without losing any money. Plus, you are able to master the software, which enables you to make fast trades when the time comes to trade. It is important not to rush the 1-month trial period because this is the most important phase of your trading course.

Once you learn Forex trading and experience a whole month's worth of market experience, then you can now use a real account with actual money. However, never invest large amounts of money; start small and try not to break the bank when getting started in the market place. By choosing a good broker, maximizing the benefits of a demo account and taking your investment one-step at a time, you learn Forex trading can be a fulfilling experience when executed the right way.

Warning Read First Before Investing In The Forex Market

Warning Read First Before Investing In The Forex Market

The foreign exchange market, also known as FX or it is also found to be referred to as the FOREX. All three of these have the same meaning, which is the trade of trading between different banks, governments, and companies that are located in different countries. The financial market is one that is always changing leaving transactions necessary to be completed through brokers, and banks. Many scams have emerged in the FOREX business, as foreign companies and people are setting up online to take advantage of people who are not aware that foreign trade must take place through a broker or a company with direct involvement in foreign exchanges.

Stocks, cash, and currency is traded through the foreign exchange markets. The FOREX market always be present and exist anywhere where one currency is traded for another. Think about when you take a vacation to another country. How are you going to be able to trade your money for the value of the money that is in that other country? This is the basis of FOREX trading, and it is not available in all banks, and it is not available in all financial institutions.

Small companies and individuals are who are many times looking to make big money, are often the victims of scams when it comes to being educated about the foreign trade markets. As FOREX is seen as how to make instant cash, people do not question their participation in such an event, but if you are not investing money through a reputable Forex broker, you could easily end up losing more than you bargained for.

Scams to be aware of

A FOREX scam is one that involves trading but will turn out to be a fraud; you have no chance of receiving your money back once you have invested it. If you were to invest money with a business stating they are involved in FOREX trading you want look closely to learn if they are allowed to do business in your country. Many companies are not allowed in the FOREX market, as they have defrauded investors before.

In the last 5 years, with the help of the internet, FOREX trading has become all the rage. Banks are the #1 source for FOREX trading to take place, where a qualified and licensed broker is going to complete transactions and requirements you set forth. Commissions are rewarded on the transaction and this is the customary way they are compensated.

Forex Training - Finding The Best Techniques Of The Trade

Forex Training - Finding The Best Techniques Of The Trade

Foreign exchange (Forex) is a specific form of trading that involves the buying and selling of various currencies worldwide. Forex trading is traded via inter-bank, which makes it an over-the-counter transaction. It can also be traded via the Internet and telephone. It is a 24-hour global market with trading centers in London, Tokyo and New York. Unfortunately, trading Forex is a difficult undertaking; thus, this market should not be entered into lightly. While anyone who has undergone training can attest that it is not difficult to learn the basics, no one should enter into the market without any kind of training.

Whether you choose to attend a course on location or online, your training should offer a variety of market topics and provide you with a course outline. The training should be geared to newcomers and should tackle finance basics, trading background and overview. Once you have found a course that fits you well, you will see that learning Forex is easy and straightforward. How do you know a course works?

First, Forex training should teach you how the market works, make you understand important terminologies and master how to conduct a trade. It should also teach you about different trading platforms, including their functions, advantages, disadvantages and other important details. By the end of your training, you should be able to read currency charts, analyze prices, manage risks, handle or prevent losses and understand what spread means are vital.

Brokers and professional traders are great sources of learning Forex. While some of these experts offer classes only after opening an account, these courses are usually free and filled with insights, tips and knowledge they are willing to share. Some even let you participate in online Forex demos, seminars and interactive online lessons to scale your capability as an individual trader.

Investing in a high-quality training is a good step to becoming a successful trader in the market. While many people are lured to join this enticing market filled with opportunity, only the educated ones survive this speculative world. Since Forex trading has its risks, producing incredible losses, this business needs to be monitored, understood and mastered. Prevent losses and increase your chances of huge profits... attend a comprehensive Forex training before competing with the big boys.

The Basics Of FOREX Trading

The Basics Of FOREX Trading

If you want the potential of making a lot of money in a short time, then FOREX (Foreign Exchange, or FX) may be just what you are looking for. It has long been the means of the ultra rich to use FOREX principles of gaining their wealth, and it has, until recently been out of reach for the average person. Now, though, many people are trying their hand at gaining wealth this way. Here are some basic thoughts about how FOREX works.
FOREX is based on the trading of one currency for another. Every day, due to international trade and business, as well as political events, one currency's value will fluctuate. Money can be gained in FX by being able to know when the currency of one country will fluctuate - and in which direction.

Although the information in FOREX uses the US dollar as its basis in most currencies, it is not always the case. Where a nation's currency is stronger than the dollar, such as in the case of the English pound, and the euro, that currency is listed first. You will see the listings of what is happening on the FOREX market using a listing such as USD/JPY 117.36. In this case, one dollar will buy 117.36 Japanese yen.

On the same chart, you will also usually see an arrow indicating whether the relationship between the two is changing - and in which direction - up or down. Most currencies are listed with 4 digits beyond the decimal (Japanese yen is the only exception). When your FOREX trading and selling results in a difference of .0001, you have gained a pip.

Trading in FOREX is actually done in units of $100,000, although you do not need to have anywhere near that much. Trades in FX can be made with as little as $50, or so. A FOREX broker, which you must have in order to trade in FOREX, will add to your purchase enough to bring the trade up to $100,000. This is called leverage. Even though you may have actually only used $1,000, the broker brings it up to the needed $100,000. In some cases your leverage advantage can be as high as 400:1. The nice thing about FX, though, is that you keep the winnings as if you had actually used $100,000.

FOREX trading actually provides you with several advantages over trading in the stock market. First, because you are actually trading in currency values, your money is always liquid. Secondly, winnings are often quick - taking place within a few hours. A third advantage is that there may not even be any cost - no broker's fee. Some will charge, however, but when they do, it still is considerably lower than in the stock market.

Learning FOREX is different than the stock market because there are different factors. Everyone has the same data to predict those fluctuations and there is no insider information. You will also need to learn how to choose your own system of predicting when to invest - using a fundamental or a technical approach, and then refining your own methodology. Practice software is available and really is a necessity when it comes to investing safely in FOREX - once you think you are ready.